Net Short

I have sold down my shares in Exelon for a small gain. The position has been a disappointment as the shares have gained 1%, while the market is up 4% in the same period. I still believe the shares are a value and will look to buy again at lower prices. The sale makes me slightly net short.

We are in an extended topping phase which could turn over any time, but conceivably could last until January. After all, the Fed will still be buying $100 bn of risk assets per month through then, and the Treasury has $200 bn in the TARP slush fund with which to trade risk assets. These injections of "liquidity" will help support the market against deteriorating economic fundamentals and overbought private investors.

But it looks like 2010 will be a down year for government stimulus, and so everything will be aligned for the bears.

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Disclaimer

I do not offer investment advice on this site. Under no circumstances does this information represent a recommendation to buy, sell or hold any security. The information is for educational purposes only. Positions may change at any time without notice.